Net Worth Calculator: Analyze Your Financial Health
Your net worth is the ultimate scorecard of your financial health. Unlike income, which measures how much money flows in, net worth measures how much wealth you have accumulated. It is calculated by subtracting your total liabilities (what you owe) from your total assets (what you own).
Use the comprehensive calculator below to determine your current net worth. This tool breaks down your finances into key categories like real estate, investments, and debts to give you a clear picture of your standing.
ASSETS (What you own)
LIABILITIES (What you owe)
Total Assets$0.00
Total Liabilities$0.00
NET WORTH$0.00
function calculateNetWorth() {
// Helper function to get value safely
function getVal(id) {
var el = document.getElementById(id);
var val = parseFloat(el.value);
return isNaN(val) ? 0 : val;
}
// Sum Assets
var cash = getVal('nw_cash');
var savings = getVal('nw_savings');
var retirement = getVal('nw_retirement');
var investments = getVal('nw_investments');
var realEstate = getVal('nw_realestate');
var vehicles = getVal('nw_vehicles');
var otherAssets = getVal('nw_other_assets');
var totalAssets = cash + savings + retirement + investments + realEstate + vehicles + otherAssets;
// Sum Liabilities
var mortgage = getVal('nw_mortgage');
var autoLoan = getVal('nw_autoloan');
var student = getVal('nw_student');
var ccDebt = getVal('nw_creditcards');
var personal = getVal('nw_personal');
var otherLiab = getVal('nw_other_liab');
var totalLiabilities = mortgage + autoLoan + student + ccDebt + personal + otherLiab;
// Calculate Net Worth
var netWorth = totalAssets – totalLiabilities;
// Format Currency
var formatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
minimumFractionDigits: 2
});
// Update DOM
document.getElementById('display_total_assets').innerText = formatter.format(totalAssets);
document.getElementById('display_total_liabilities').innerText = formatter.format(totalLiabilities);
var nwElement = document.getElementById('display_net_worth');
nwElement.innerText = formatter.format(netWorth);
// Styling based on positive/negative
if (netWorth >= 0) {
nwElement.className = 'net-worth-positive';
} else {
nwElement.className = 'net-worth-negative';
}
// Show Results
document.getElementById('nw_results').style.display = 'block';
}
Why Tracking Your Net Worth Matters
Many people focus solely on their income, believing that a high salary equals wealth. However, you can earn a high income and still have a low or negative net worth if your spending and debts outpace your earnings. Tracking your net worth provides a truthful snapshot of your financial reality.
Financial Measurement: It is the most accurate metric to track financial progress over time.
Debt Management: It highlights the impact of debt on your overall financial picture.
Goal Setting: It helps you determine how close you are to retirement or financial independence.
Liquid vs. Illiquid Assets
When calculating your net worth, it is important to distinguish between liquid and illiquid assets. Liquid assets (like cash, savings, and stocks) can be converted to cash quickly without losing value. Illiquid assets (like real estate or vehicles) take time to sell and may require fees to liquidate. While both contribute to your net worth, a healthy financial profile usually balances both.
Steps to Increase Your Net Worth
If your calculation didn't yield the number you were hoping for, don't worry. Net worth is a dynamic number that changes every month. Here are three primary ways to increase it:
Pay Down Debt: Every dollar of principal you pay off on a loan increases your net worth by a dollar. Focus on high-interest debt like credit cards first.
Save and Invest: Increasing your assets through savings accounts, 401(k) contributions, or stock market investments directly boosts your top line.
Cut Expenses: Reducing monthly outflow allows you to allocate more money toward the two steps above.
Frequently Asked Questions
What is a "good" net worth by age?
A "good" net worth is subjective and depends on cost of living, but general benchmarks suggest having 1x your annual salary saved by age 30, 3x by age 40, 6x by age 50, and 10x by age 67. The goal is to have enough assets to support your lifestyle in retirement.
Should I include my home in my net worth?
Yes, your home is a major asset and should be included at its current market value. However, you must also include the remaining mortgage balance as a liability. The difference represents your equity.
Does income affect net worth?
Income does not directly appear in the net worth formula (Assets – Liabilities). However, income is the "fuel" that allows you to buy assets and pay down liabilities. A high income makes it easier to build net worth, but only if you save and invest the difference.